Market's evolution 25 of May to 29 of May 2015

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Tuesday, 02 of June 2015

Market's evolution 25 of May to 29 of May 2015

Past week in the equity markets was negative. Uncertainty about the viability of the rescue of Greece, which has 1,500 million euros maturing in June, and the results of the regional elections in Spain guided the investor sentiment, along with the US data were not as good as expected.

In Europe we knew consumer confidence in Germany (increase) and France (down). The indicator of economic sentiment in the euro area was above consensus.

In USA, the Chicago PMI surprised on the downside (46 vs 53) and consumer confidence picked up, though durable goods orders fell. Sales of new homes rebounded by + 7% from the previous month.

From Greece rose claims that it is ready to start drafting the agreement with its creditors. But from the IMF a stronger position was adopted and it was said to be far from the agreement and chief Lagarde did not rule out Greek exit from the Euro.

The uncertainty helped safe heaven bonds: the yield on Bund fell to 0.50% and to 2.11% for the Treasury. Instead, the risk spreads in the periphery continued to increase smoothly.

Meanwhile, Brent went down to 62 USD / barrel from highs of 70 USD in the previous week.

At the corporate level, Mexico will review all contracts for concessions OHL Mexico in the country to confirm that conform to legality and transparency, after haver been protagonist of a scandal over alleged bribes. The price of OHL fell 11.40% during the week.

On the positive side, the CNMV approve the takeover bid launched by Orange on Jazztel at a price of € 13 / share and IAG announced its intention to launch a takeover bid for all the shares of Air Lingus (AL).